WellPoint shares drop following second quarter Medicare spending analysis

Shares of the health insurance company with the highest enrollment, WellPoint Inc., fell dramatically after the insurer announced that its second quarter medical care costs spiked following an increase in its Medicare patients. For the second time this year, the Indianapolis-based insurer has increased its annual forecast following the increase in sales. The enrollment with WellPoint increased by 2.1 percent, reaching 34.2 million, primarily from a rise in elderly and disabled Medicare members. Approximately 75 percent of the new enrollees with Medicare had come from competitors that had withdrawn from…

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